FDIC maintains Wachovia didn’t fail, and says all depositors are protected. FDIC grants FDIC $12 billion in preferred stock and warrants to compensate FDIC for bearing this risk. Citigroup Inc. will absorb up to $42 billion of losses on a $312 billion pool of loans. President Bush calls for $700 billion bailout deal to “keep our financial system from spreading throughout our economy” The U.S. House of Representatives passed the bailout bill in 220-198 vote to move to a final vote.”]
Source: https://www.cuinfosecurity.com/wachovia-assets-acquired-by-citigroup-a-983